<p>The major US indices are trading at new session highs. The Dow industrial average is up 579 points or 1.99%. The S&P index is up 75.7 points or 2.08%. The <a href="https://www.forexlive.com/terms/n/nasdaq/" target="_blank" id="73ea5227-7971-4d75-a878-f20ede81c27e_1" class="terms__secondary-term">NASDAQ</a> index is up 225 points or 2.08% as well.</p><p>Him him him</p><p>Looking at the NASDAQ on the weekly chart the 200 week moving average comes in at 11113.59. The high price just reached 11060.64. </p><p>That 200 week moving average will be a key topside target that traders will be eyeing as the market moves toward the close for the week on Friday. </p><p>Last week was the 1st close below that moving average since March 2020. A failure on the break lower would give buyers some added confidence for a further technical bounce with the 50% midpoint of the move up from the March 2020 low coming in at 11421.82 as the next key target.</p><p>Looking at the Dow 30 index, its 200 week MA is at 29772.31. The high price reached 29723.44. Like the NASDAQ index, a move and close above the 200 week moving average this week would be more bullish as traders would be disappointed of the failed break last week.</p><p>To have 2% gains is a breathe of fresh air. However, the buyers are not out of the woods. There are still a lot of potential headwinds as the US is still near highs, rates are still high and could impact growth. <a href="https://www.forexlive.com/terms/e/earnings/" target="_blank" id="cd852b85-3a1d-45ed-8691-cef64b568bed_1" class="terms__main-term">Earnings</a> should still be under pressure and that could still make the bounces shallow and met by selling, vs. follow through buying. I will be watching the charts and technicals for clues. </p>
This article was written by Greg Michalowski at forexlive.com.
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